Ethiopian Business Review

Nation Continues to lose billions to raw material imports

In recent years, domestic sourcing, a procurement strategy adopted by companies to purchase their inputs,  is gaining momentum due to the fact that localisation brings cost-savings across the supply chain, especially in light of climbing costs in traditionally low-cost regions. However, although many multinational and local companies are investing in the country, Ethiopia lags behind in this regard. Even though the lack of raw materials on the local market has forced companies to lean towards imports, the scarcity of foreign currency is putting extra pressure on their survival. EBR’s Ashenafi Endale investigates the difficulty faced by manufacturers due to low level of raw materials sourcing from domestic suppliers in Ethiopia. 

Thursday, 16 August 2018 13:43
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If anything has cast a pall over the Ethiopian economy, it is the foreign currency shortage, which reached historic lows just three months ago. This has prompted businesses to look for alternative means to alleviate the problem, such as transacting using diaspora accounts. The accounts are offered to non-residential Ethiopians, as well as Ethiopian-born foreign nationals who have been working and living abroad for more than a year. This has opened a window of opportunity for legal as well as illegible account holders to access foreign currency without waiting for the approval of  letters of credit. EBR’s Samson Berhane reports. 

Thursday, 16 August 2018 07:43
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Is it the Magic Bullet for Africa's Industrialization?

The African Continental Free Trade Area (ACFTA) was signed by 44 African countries, including Ethiopia, in May 2018, and will cover a market of 1.2 billion people and a gross domestic product of USD2.5 trillion once it is implemented. In terms of numbers of participating countries, ACFTA will be the world’s largest free trade area since the formation of the World Trade Organization. The creation of a free trade area is expected to boost the current intra-Africa trade, which stood at 13Pct. Although officials stress that it will be a beneficial for Ethiopian goods to penetrate other African markets, many are concerned over the competitiveness of the private sector in the local market, let alone outside the country. EBR’s Ashenafi Endale reports.

Friday, 10 August 2018 18:00
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